According to the latest report released by market research agencies on Monday, the global semiconductor revenue for 2024 is projected to grow by 16.8%, reaching $624 billion.
As per the latest forecast by market research firm Gartner, the global semiconductor revenue for 2023 is expected to decrease by 10.9% to $534 billion. However, the market is anticipated to grow by 16.8% in 2024, reaching $624 billion.
"We are at the end of 2023, and the robust demand for chips supporting workloads like Graphics Processing Units (GPUs) for artificial intelligence (AI) isn't sufficient to reverse the double-digit decline trend in the semiconductor industry for 2023," said Alan Priestley, Vice President Analyst at Gartner. "Reduced demand from smartphone and personal computer customers, along with sluggish data center/ hyperscale expenditures, is impacting this year's revenue decline."
The memory revenue is expected to rebound in 2024 after experiencing a double-digit decline.
Agencies predict a 38.8% decrease in the global memory market in 2023, followed by a rebound of 66.3% in 2024.
Weak demand and substantial oversupply leading to price declines are expected to cause a 38.8% decrease in NAND flash memory revenue, dropping to $35.4 billion by 2023. In the upcoming 3-6 months, pricing in the NAND industry is expected to hit the bottom, leading to an improvement in the suppliers' situation. Gartner analysts forecast a strong recovery in 2024, with revenue increasing to $53 billion, marking a 49.6% year-over-year growth.
Due to severe oversupply and insufficient demand, DRAM manufacturers are lowering market prices to reduce inventory. By the fourth quarter of 2023, the oversupply in the DRAM market will persist, triggering a price rebound. However, the full impact of price increases is expected to materialize in 2024, where DRAM revenue is forecasted to grow by 88%, reaching $87.4 billion.
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